Reflections by me? Been a bit slow off the mark blog wise this year as endless layers of projects overlap and blogging has fallen off the list. But there are some goodies about to be blogged here, just simmering, almost ready for serving. Smell that goodness.

For the moment though two of my ‘thinks’ that others published for me. The first from Bettina TIzzy’s great (‘What the World Needs Now is‘) Not Possible in Real Life (NPIRL) blog who posted a selection of my slightly half-baked thoughts re: virtual worlds. Following that, also featuring SL & Telstra, a rather positive retrospective from ITWire extensively quoting me, about how companies can engage properly, The Pond is a build I created back in early 2007.

OK to the post. I know, a lazy re-posting but there are a few nuggets in here…over to NPIRL.

Sydney-based Brit and marketing wiz, musician, composer and rich content creator in virtual worlds Gary Hazlitt (aka Gary Hayes), is already done celebrating the incoming year, while we wait for a few more hours in the Western Hemisphere for 2009 to arrive.

I welcome Gary’s guest blogpost and knowledgeable take on the recent past and the coming adventures of virtual worlds. Happy New Year, everyone! – Bettina Tizzy

In the social Virtual Worlds context, 2006 was about hype… another new frontier ‘kid-on-the-block,’ but became about fast bucks and cheap and cheerful PR. We saw that bubble gently burst in 2007 as the realisation that one world in particular, Second Life – (which is still the leading example of culturally created virtual content), was really about creative communication and artistic expression versus the local shopping mall or a crude business tool.

Last year, 2008, we witnessed a distillation in what Second Life (and by implication other customisable worlds) is really about, leading to a proliferation of new, niche virtual worlds meeting the cultural and entertainment needs of much broader demographics. We effectively saw the ‘fat’ surgically removed from Second Life and an acceptance that this new medium and form is still in its very early days, but in 2008 there are clearer reasons for being a part of the social web mix:

1. An immersive expression of community – Facebook and MySpace-meets-World of Warcraft. This community can create their own environments or swarm around trusted film, TV or lifestyle brands, too.

2. For business, it is more about a place to meet, present and recruit and far less about brand awareness, product sales or vacuous hype. The business model in 2008 clearly came into focus: the community selling to itself – brands needed to court existing inhabitants very carefully.

3. For education, Second Life is one of the most efficient tools in the learning process. Education becomes democratised, everyone can contribute and learn equally, remote learning is far more compelling, fun and immersive.

4 A creative tool. Second Life, in particular, showed significant maturity as we saw a higher number of serious live performance (CARP Cybernetic Art Research Project, NMC, DanCoyote Antonelli, for example), a record number of in-world ‘machinima & TV-like programs’ and by far the largest array of creative statements from virtual environment artists, many members of the NPIRL group. The quality of ‘experience’ creation from talented musicians, designers, photographers, artists, etc., reached new heights.

GROWTH OF WORLDS

Investment across the board – more than $900 million US invested since Oct 2007 – has moved away from generalist worlds like Second Life to more focused niche or user base environments with many starting to exhibit core game elements. These include those with renewed investment after new’ish launches: vSide, Football Superstars, Stardoll, Home, IMVU, Metaplace, Multiverse Places, and Music Mogul.

Towards the end of the year, console social worlds came onto the scene. XBox360 and Wii are very similar in ‘cartoon’ aesthetic, whereas Sony is far more game focused. All have very similar business models – create a space to hang out and be ‘tempted’ by games/film/merchandise. Although these are not yet places for community creation, they will soon learn that to keep inhabitants they will need to be or, like Google Lively, have to pull the plug. Embeddable or layered worlds began in 2008 and are likely to be significant in getting people used to real time communication through ‘representational’ avatars – vs text based ‘social network’ profiles. Also, Facebook worlds like YoVille or Vivaty, or layered worlds like Rocketon or Weblin that are embedded on the existing 2D web. The dominance of the likes of Club Penguin and Webkinz at the tweens end of the spectrum will be duplicated through teens and gen y’s as a series of new, highly focused and targeted social worlds launch next year. This has already begun with Football Superstars and Music Mogul but expect to see many more – including several with user created content as a feature alongside the virtual economy.

HIGHLIGHTS OF 2008

– Graphics in Second Life become teenagers. Still some way from the likes of Crysis, Second Life Windlight turned the world into something far more fantastical for many. It added layers of light, glow and control to a previously very ‘flatly lit’ world. We still wait for dynamic shadows, better environmental sound and an even more useful scripting language (post Mono), but this was a paradigm shift for environmental artists.

– Some companies got it! There was not a plethora of companies or brands entering Second Life but those that did had continued success as they concentrated on the social (people) rather than ‘product’ aspects of their business. Although the Pond leads in dwell terms, new entrants like Warner’s Gossip Girl have done exceedingly well. Car companies still do well even though Pontiac walked away from Second Life, and Toyota, Fiat and Nissan are always in the top 10 brands.

– The quality of machinima across all social and game worlds increased exponentially this year and a growth in communities watching ‘documents’ of the worlds they spend most of their time in. In addition to some machinima appearing in heritage media (“Molotov Alva and his Search for the Creator” and HBO/Cinemax, for example) there has been a growth in long form game-engine films and notably many more serious issues tackled.

– The New Worlds. A fracturing, as it became obvious that Second Life cannot be all things to all avatars – so nearly 70 other worlds all showed up on the radar. Many are focusing on niche interest or are highly branded. Several of the new ‘jack-of-all-trades’ entrants will learn that enabling community creativity and an economy is absolutely necessary. There were several walled garden/locked content mirror worlds and builds in 2008, which will learn to be not about ‘broadcast’ spaces, and realise that their worlds are far more significant than modelling what is around us – “In augmented and online virtual worlds, humanity will exponentially evolve, free from the limiting ghosts of that other virtual world we called reality”.

The second item appeared following my presentation at the Online Distribution and Business Collaboration conference from November 2008 in which I hurriedly went through some good inworld and game marketing case studies. Kathryn Small here picked up on why Australia’s BigPond is working really well – and no, it is not all about the broadband capping situation in Australia. Most of the regular inhabitants are on other ISP’s – anyway the article covers my thoughts on this and I have a much longer analysis with stats for the nearly 2 years it has been active, in the pipeline. (Also worth mentioning something about the item at the start of this one – Tourism Victoria didn’t withdraw its funding, Multimedia Victoria requested I take down a temporary ‘trial’ build of Melbourne Laneways – which had an original 3 month ‘learn as we go’ tenure on ABC Island. Otherwise a good item below.

It’s a match made in heaven: Telstra is Australia’s biggest telco and ISP, while Second Life is one of the world’s hottest social networking tools. So when the media reported that “the game was almost over” for Second Life, Telstra was quick to defend its investment.

Recently, Tourism Victoria withdrew its advertising funding from Second Life’s ABC Island. This prompted Deacons technology and media partner Nick Abrahams to comment to The Australian that “the drop in commercial interest in Second Life had been noticeable over the past nine months”.

Abrahams said that at any given time, fewer than a couple of hundred Australians might be in Second Life.

But virtual worlds expert Gary Hayes said that virtual world ratings should be measured in engagement and user hours, not just hits.

“Immersive online experiences need new metrics, and marketeers and academics are realising that social worlds do provide the potential for very high dwell figures,” said Hayes.

“Facebook has 65 million users on for just four hours per month. 132 Americans watch YouTube but they watch only about five minutes per day or 2.5 hours per month,” said Hayes.

“Second Life (and other social virtual worlds) has the highest rates of loyalty and stickiness of any social network generation, more than 50 hours per month per user.”

Hayes said that Telstra’s islands, known as The Pond, had a steady stream of around 50-100 users at any given time.

Telstra spokesperson Peter Habib quoted figures compiled by The Project Factory which said that BigPond’s islands were the most popular in Second Life.

The Ponds were founded in March 2007 with 11 islands (now 16) which have hosted virtual concerts, ANZAC Day commemorations and even New Year and Australia Day events.

BigPond recently hosted an AUSTAFE event which involved live streaming of the event from Adelaide into Second Life.

The Ponds also contains five residential islands for users to build themselves virtual real estate to live in, at near 100 per cent occupancy.

Telstra spokesperson Peter Habib told iTnews, “BigPond’s commitment to innovation, interactivity and entertainment in Second Life is a key part of our success.”

Habib said that BigPond has opened a virtual in-world service kiosk that allows Second Life users to interact with BigPond customer service staff in a virtual way.

Hayes said that The Pond’s approach to customers differentiated it from many other brands.

“The real success of The Pond is more about the regular events, the creativity of the builders who often come from the community, elements of nationalism, and many of the organic spaces that promote stickiness by their ‘ambience’ rather than superficial interactivity. This has been a real differentiator.”

Habib dismissed the concerns of other providers with success on Second Life.

“While other companies may not share BigPond’s successes, we are more than pleased with the popularity of our Second Life islands”

Hayes said that companies might not succeed in Second Life for two reasons. First, that many brands were brought into Second Life for the wrong reasons, and with misunderstandings about the social network. “You cannot build into a social network and not be social,” said Hayes. “Early entrants simply did not act human; they acted like a corporation, and built clones of the real world, and didn’t think experientally.”

Second, Hayes said that companies needed to change their offering to virtual customers.

“We are seeing the natural exodus of ‘showroom, build-it-big-and-boring’ brands and the settling of second generation ‘social’ and ‘purposeful’ brands. So The Pond, Accenture, Playboy, The L Word, and about five other key brands are really getting to grips with setting up a virtual base in a social world.”

John Brand, research director at Hydrasight, agreed.

“Only organisations who want to be perceived as ‘bleeding edge’ should ever have been involved in Second Life in the first place,” said Brand.

“Now that Second Life is entering its relative teenage years (measured in Internet years at least), the early adopter bandwagon has well and truly been jumped on.”

But Brand (edit: Hayes) noted that Second Life is not the only virtual world.
“There are at least 50 other mainstream entities and the total audience (according to a trusted site on this topic, KZero) is well over 300 million. In the second quarter of 2008, $161 million was invested in 14 virtual worlds, in the first quarter $184 million put into 23 virtual worlds, so the total this year alone is $345 million across 37 new worlds.

“Australia is a tiny market compared with Europe, Asia, South America and the USA, so fluctuations are highly likely. The fact that the user base of one virtual world fell by 23 per cent in a year is common with any service coming out of a hype phase into a stable mature phase.”

Fed up with your avatar having to live inside a wall-garden world? Want to bring it out into the wider web to play? Well it seems a revolution is at hand, early days and a few notable services listed below, but keep your eyes peeled as virtual characters start to infiltrate our flat 2D web and turn web pages into a game, a veritable MMO. There are naturally several new and emergent marketing possibilities.

With the recent addition of Google Lively and a host of other character based browser enhancements what follows is a summary of applications or services that sit neatly between your traditional web 2.0 2D website (flickr, youtube, blogs etc) and a fully rendered ‘walk-around’ world. These are apps that mash game-like avatars with web pages, allow you to move inside pages or play with friends over the top of them. There have been many trials and false starts of these over the past decade but given the ‘game generations’ that are so used to being a toon/avatar/game character it seems a natural step to turn some, not all, web pages into something a little more ‘representational’ of our real social environments – for example why not gather around that cool YouTube video that has just come out, no not embed on a screen in second life, we all go to the YouTube page and hang out! Firstly though a reminder of where web 2.5 probably sits based on my oft cited diagram from a couple of years ago…we are looking at that point 2008 where the two way web merges with the live Web 3.0.

There have been quite a few early ‘avatars’ on a page services and games in the past and many successful ones using basic pandora/ALICE type AI technology to create talking heads that welcomed you or read the page or even recommended things for you to go and consumer. Then I recall way back when AI type pets Catz/Dogz for example, that ran amok across your computer desktop. Then there are the newer generation browser’creatures’ neopets/webkinz and others that allow an element of tracking outside the worlds. But this list below is about casual, social virtual environments layered or embedded into traditional social media websites with the specific purpose of stimulating ‘chat’, sharing and other emergent and natural behaviour alongside traditional web media.

A german friend in Second Life who knows the developers personally alerted me to Weblin a few months ago and they have gone from strength to strength. To quote from their own website

“Meet your friends and new people on every website! – Your personalized weblin avatar surfs the web with you, enabling you to see friends and meet new ones on the same site as you. Weblins can chat, move, show emotion, visit lounges, and trade stuff with other weblins.”

It has been PC only so far IE and Firefox with a weblin lite for mac and linux now in beta. I have ventured around a few media sites looking for the crowds gathering and chatting about the page they are walking around. The rich media sites work best of course and having yourself as a little character walking around the bottom of a web page takes a little getting used to and best done with a group of friends, touring the web together, remotely so to speak. Tremendous mash-up potential with Digg/Delicious and others. The point though with sharing a page with others is to have enough to talk about and even better in synch, so video sites are preferable to a single image on flickr for example. There is potential also for education use where a class of remote students and mentor travel the web and congregate around large text pages for discussion etc:

Much in the same ball park TechCrunch covers this Weblin clone-type start-up in a brief article based on their press release and quotes them – the company says

Ã¢Â€ÂœweÃ¢Â€Â™re not targeting kids. I know those initial avatars look very Club Penguinesque, but when you see the full system, it will become clear that weÃ¢Â€Â™re going for teens and up (15+).Ã¢Â€Â

This is currently in closed Alpha and it sounds like they are still raising funds from investors as their website is pretty thin but they have a lovely promo video below. This great article by Kirsten Nicole of Mashable (credit: linked image with Coke above) takes us on a step-by-step walk-through and leads to the most exciting but rather no-brainer element – as you surf around some ‘partner’ sites will have applications where your wandering avatar can interact with the page. So prizes for coming back, small games to play with others on the page and so on – marketers time to play! Another aspect that may make RocketOn more sucessful than Weblin is of course the fact that the avatars can roam around pages and build on them – well that’s the way it seems from the promo, in reality we shall see.

Unlike the two above ExitReality takes a slightly different approach to making flat boring 2D web pages more avatar friendly. They turn them into 3D worlds! Yes your heard correctly. The image below is me walking around a flickr page which almost instantaneously was converted into a 3D walk around gallery. Still very buggy on my souped up main PC with many sites not rendering at all, this has some real potential once they fine tune that dimensional converting widget. Keep an eye on these.

Text from their website:

What is ExitReality for?

View any webpage in 3D… every website is now a virtual world

Turn your standard 2D web page into your own unique 3D space

Meet and chat with people in 3D

Search and explore thousands of online 3D communities and meet new people!

Well we all know about the new 500LB Gorilla in town, masquerading as a cutesy, half-baked 3D chat space. I have blogged about this a couple of times already and made a strong point that it is the ability to embed your small ‘lively’ window in ‘your’ sites as being its USP. I copy an extract from my post of a few weeks ago…

There is also a nod to PS3 Home given the strong create your own room using bits of found furniture (in fact very Habbo also), embed it in your blog etc and what looks like a catalog where 3rd parties can eventually come along and sell pixel products, virtual goods – which is where the real biz model is of course.

A new immersive web platform called Vivaty Scenes lets users create tiny virtual worlds and decorate them with content from around the internet. After adding Vivaty Scenes, which entered public beta Tuesday, to a Facebook or AOL Instant Messenger account, users can set up a customizable “room” where they can host chat sessions or small virtual gatherings within a web browser. The free service lets users pull content directly from some of the internet’s most popular sites. Scenes’ virtual televisions can be populated with any video from YouTube; virtual picture frames can be filled with any picture from a user’s Photobucket, Flickr or Facebook accounts.

Another quote from their site:

Vivaty’s vision is to make the Immersive Web a reality by transforming the flat web into a more visually rich and expressive experience that amplifies socialization and engagement. The company’s end-to-end web platform is designed to enable distributed virtual experiences anywhere on the web. Founded in 2007, Vivaty is led by a team of web, gaming, and graphics experts…

(Disclaimer: I do some work with these folk.) This is really a development of the old ‘talking head bots’ of the 90s and early 00s but with a twist. MyCyberTwin is you, well as close an approximation to your personality, wrapped in an AI text based engine which you train based on conversations people are having with you on yours or other’s web pages.

MyCyberTwin is a website that allows you to quickly create compelling virtual personalities called CyberTwins. These virtual beings live and breathe on the web and chat to your friends, family, colleagues or customers on your behalf.

OK how is that a LSVW (Layered Social Virtual World) I hear you ask? Well as they say “MyCyberTwin is a website that allows you to create virtual personalities that can chat for you online.” So this backend persona can be plugged into any client – we have done it with Second Life but their real model is having MyCyberTwins have ‘social’ conversations on blogs or marketing sites and so on. It is really you being able to chat non-real time, asynchronously to friends or interested parties 24/7- it is you digital proxy.

At both ends of the rather off-line talking at you continuum we have a free to use AI backend that allows you to run customised chat mash-ups over your web site in Pandora (1) and then the most commercial example of the same thing in SitePal (2). There are many in-between.

2 SitePal provides a number of powerful, yet easy-to-use features for designing, scripting and publishing your animated speaking characters.

1 Pandorabots is the place where you can create and unleash virtual personalities. Pandorabots is an experimental software robot hosting service based on the work of Dr. Richard Wallace and the A.L.I.C.E./AIML free software community.

From any browser, you may create, design and publish your own software robots Ã¢Â€Â“ and make them available to anyone via the Internet. Sign-up for an Account to begin creating your own virtual robots.

Otherwise known as Passively Multiplayer Online Gaming with a catch phrase ‘play the web’ and more about playing as groups across web pages rather than ‘real’ avatars layered on or in your web browser. PMOG’ers are given or create quests, missions (hundreds of them!) and most importantly set traps or goodies for each other and can literally bury treasure or mines or other clues on specific URLs that other players are likely to ‘stumble’ across – all managed from a “World of Warcraft’ type plug-in, bottom bar for Firefox. They earn points travelling around that can be spent at a ‘Shoppe’ – which I have yet to find myself!

There is a link between PMOG and a site called GameLayers who have a large team and advisors including Cory Doctorow. They are lead by Merci Victoria Grace as CCO whose bio reads:

“a creative force in the field of immersive entertainment design. A writer and artist…At GameLayers, Hammon envisions a game built on top of the entire internets and works with creative people to materialize that vision.”

OK a quick round-up of a few new services currently enabling a new way to browse the web. There are many important implications that come out of this collision mainly around the investment of time people usually put into their avatars in self-contained world could be stimulated in some of the examples above – loyalty for browsing and tracking as your avatar automatically gains extra powers (game speak for reward for completing goals) as it visits ‘enhanced’ sites. There is also the possibility of interoperability with your other 10-40 avatars in other worlds that could receive some of the characteristics of the ‘web’ wanderer. The list goes on and I have to get back to good ole traditional web browsing. If you know of other examples of the above please meet me on this page regularly at 10pm AEST 🙂 Or just comment!

As promised a rough transcript of my keynote talk to CeBit last week based on my experience of actually building some Second Life sims, talking to those who use them and creating branded environments that have more usage than any others inworld, so far. There will be a video and/or podcast at some point from CeBit TV and linked from our Project Factory main site but for now lots of ‘nice’ words and this YouTube video I uploadedâ€¦

‘
Hello I’m Gary Hayes and thank you for inviting me here to speak at CeBit this afternoon. I hope that by the end of this very brief introduction to virtual worlds, and particularly Second Life, you will be more aware of the major changes that are happening to what we used to call ‘the web’. Virtual worlds are a new disruptive and transformative medium and one that is becoming a significant force alongside our traditional media experiences. But it is still early days. It is the silent movie era, a bit like TV in the late 40s or the web itself in the early 90s – but already virtual worlds are a place where the audience stops being the audience, who become and create their own stories. For those without any exposure to virtual worlds this talk will be a beginners guide and for those who already know something or a good deal about these 3D shared spaces there will perhaps be one or two surprises, Hopefully we will go inworld too if the connectivity gods are with us.

So what do we mean by virtual worlds. In very simple terms they are a bit like MySpace meets the Local Pub meets YouTube meets The Shopping Mall meets Flickr meets World of Warcraft – ok not that simple. We are really talking about non-game based, online spaces where people create new identities and become a part of a larger resident community. There are often no rules, only those set by the inhabitants themselves, this makes it a particular challenge for brands as we will see later (they don’t like to be told how to live!). Many of you would have heard of Second Life, with nearly 6 million registrations at the moment, but there are many others. Habbo is interesting as a simple isometric service for teens now with 76 million registrations and nearly 8 million regular users. Playstation 3 is about to launch ‘home’, a sort of virtual apartment suburbia connected to other PS3 players and EA games has just teamed up with Endemol to deliver what we sometimes call Mixed Reality (cross-over programmes between TV and virtual worlds). There are quite a few others such as there.com, Kaneva and many new kids growing up on the block such as multiverse, croquet or outback online. MTV Networks used the there.com engine to do some extremely interesting TV/Virtual World cross-over services like Laguna Beach, which I sadly won’t have time to talk about. Common to all of them are people using these shared worlds to interact with others around the globe, for hours at a time.

So what are the forces at work here, what is driving this change? Well I suppose there are two key ones. The first is the shift from humans wanting the internet to be more than the rather lonely and non-real time experience to one where as a “participant” they can have real time, collaborative and far richer immersive social interactions. Note I am careful to not call them, the audience – be aware that any media that still thinks of the residents of virtual worlds as audiences are doomed to failure. The second force at work here is to do with residents in worlds wanting to be far more active, creationist and imaginative. They are creating their own experiences versus passively consuming media, such as on TV or via YouTube for example. You have all heard of web 2.0 (blogs, wikis, flickr – the sharing web) well I like to think of virtual worlds as ‘part’ of web 3.0, the real time, co-creative web. It is still about sharing but in a far more natural setting – this is a space where you can walk up to someone and ask -Where can I buy some shoes and will you come shopping with me” versus typing the word shoes into some abstract search engine on the web and spending hours looking at flat pictures. A question I often get asked is, -Is this hype and something that will go away?” Absolutely not. I am old enough to have lived through the dawning of the web and early failed 3D world services, this is totally a part of that on-going evolution and this will now be here for good. The real question that should be asked, and perhaps the focus of my talk, is how are brands and professionals attempting to integrate into these spaces, will they create a virtual paradise or another dotcom burst?

The thing that’s common with all virtual worlds is the real time shared experience, and that should be the key to anyone thinking of setting up a branded space inside these worlds. Participants want to be just that, participants and co-creators. In a world like Second Life (now four times the size of San Francisco around 210 square miles) and where 99% of the content is made by the inhabitants, for a brand to simply plonk some souless buildings, or theme park, or even well displayed real world product falls way short of what the residents actually want. The message that we are getting from the inhabitants is for businesses to -play with me, don’t sell at me.” This is very important. These worlds are extremely ‘sticky’ and inhabitants invest a great deal of themselves in co-creating the environment and the numbers speak for themselves. In second life at the moment there are over 200,000 unique entrants per day spending an average of 4 hours in world – that’s nearly 1 million user hours, and with a population growing at around 30% per month you can see why many other virtual worlds will be popping up in the next few months and years to meet this demand.

Lets have a look at a very short video (which can also be seen on the Project Factory stand throughout the day) showing some of the social activities, the thing that is really driving demand in these environments.

SELF CUT VIDEO -a montage of a variety of experiences” (in background starting up SL if connectivity for demo)

So a brief taste of what goes on inworld, very experiential activities such as dancing, sport, ‘inworld tourism’, education, collaborative building and so on. These are often missed or ignored by the mainstream press. With my other hat on as Director of the Laboratory for Advanced Media Production at AFTRS I am also active in the educational areas in Second Life where collaborative, experiential teaching is growing into a powerful tool – a very vibrant and active community. But who are the real inhabitants? In Second Life it is far from being just young males. The average age is 33 and women constitute around 43% of the total. Interestingly the time spent gender wise is reversed. Of the total time spent by all participants, females account for 60%. Looking at the international split around 31% are from the USA, 48% Europe and 21% rest of the world. Europe is by far the fastest growing area now with growing numbers of English, French, Dutch and Germans so the servers (currently in San Fran and Texas are in the wrong place!). Back to the age question, one fascinating statistic I gleaned last week from Phil Rosedale, the CEO of the makers of Second Life, was that those over 60 years old spend 30% more time in Second Life than those aged 30. Lets try to pop into world now, hopefully, and have a quick two minute wander.

DEMO INWORLD. This space is called the Pond. The one that the Project Factory produced and built for Telstra BigPond. I am not sure who is around but regardless lets have a look at how Second Life works. That is me, the one with the wings and here I am at the main welcome area. Lets go for a short walk, if we meet anyone we may have a chat. It is important to have a welcoming or totally unique environment, look the ripples on the lake, palms, things to do, boating, dancing and of course a popular pastime, flying – (impro a bit here depending on audience reactions). I would like you to notice too how the advertising and brand presence is not ‘in your face’, more about that later. CLOSE DEMO.

Second life is not just about sex, money and griefing. Griefing, by the way, is a term used to describe irritating behaviour, which actually is extremely easy to control. Most of the stories you hear about ‘virtual terrorism’ is really a toxic combination of unprepared companies inworld and the media that likes to find ‘an angle’, just like the real world then. The Project Factory and other Second Life developers have many easy to implement strategies to reduce this to a minimum.

Onto money and opportunities for brands. For the moment it is about getting in there early (first mover advantage), learning about what works and collaborating with the existing resident communities. This both shows that you are ahead of the curve but also open to really having a direct relationship with your customers and most importantly learning from them. It is a way to reach and understand your existing clients and prepare for what will be a mass audience in a very short time. A recent inworld survey by CB News in partnership with RepÃƒÂ¨res asked over 1000 Second Life residents their opinion of real world brands and there were some surprisingly results. 66% believe that the presence of RL brands has a positive impact on SL and 45% of respondents even want more brands because they enhance and give more credibility to Second Life, a realism and make SL more interesting, by increasing the number of residents. But at the moment we are not talking about mass audiences. Successful brand presences, and two of the recent Project Factory builds in Second Life are in the top five, may have anywhere between 30-60 thousand unique visitors per quarter. These will seem like small numbers to some brand owners and advertisers, but, and here is where it gets very exciting, the inhabitants are spending anything between 15 minutes and 6 hours per visit to your brand! That figure is unheard of in almost any other media even more significant and important for those concerned with reach is that those residents are the most active in the blogosphere, and millions of impressions are generated outside these worlds – they tell of their lengthy experiences in the other social networks.

Shopping in virtual worlds is actually fun for the inhabitants and comes up as one of the most popular pastimes. The ability to browse products alongside your trusted friends is more akin to the mall than eBay of course so this is a real opportunity for those who want to attempt to make in or out of world sales. The more progressive companies are allowing consumers to co-design product and even order real world product from within the environment. A simple example. Very similar experiences to real life are being created in these worlds such the shared ‘media’ experience – listening to music, watching movies with others is pretty cool, you can chat and play-around with your fiends alongside the latest film. Dominos pizza realised this early and now allow you to order your ‘real’ pizza while you virtually watch movies with your ‘distributed friends’. Domino’s IT director Jane Kimberlin said “Second Life is where Domino’s customers are and therefore that’s where the pizza company needs to be too.”

How to make money? As is well publicised (in fact I can’t believe I am still talking about this) Linden dollars is the Second Life currency which can be converted into real world dollars. There are some businesses operating in Second Life that are earning real money selling virtual products. These include clothing, dance animations, selling or leasing property, buying even selling shares and the number of Second Life residents generating more than US$5,000 in monthly income has more than quadrupled to 116 in the past year, according to Linden Lab. Also brands who create product inside Second Life own the IP inworld and more importantly they retain it if they move it outside and create out of world, real product, so great news for inworld R&D. But selling things shouldn’t be your focus. It should be about integrating your brand and becoming a trusted addition inside this unique and vibrant social network. You must add value and not just build and run or build and not be around to welcome your visitors. There are way too many empty branded spaces in some virtual worlds. Lets see some of the brands that have already taken the plunge, this is a short edit of a longer video I compiled on the stand and it looks at a few recognisable names.

Quite a few recognisable brands there, so how are they doing?. Well on Thursday last week I went inworld and using the built in Search/Places facility which brings up the standardised traffic figures I looked at the ‘dwell’ traffic for each of them. Dwell is not just how many visits but how much of their inworld time they spent with each of the major brands. Also the inworld traffic measurement is the only real way to compare like with like which is why I am showing it to you. So here are the results.

Great news for Australia with BigPond and ABC (built by the Project Factory) in the top five and this is months after launch, so outside the hype curve. But why are some of the others so low? All those wonderfully designed, branded buildings with lots of things to do? Well to me a couple of the critical elements that many brands have missed are –
Firstly- Creating spaces that are just really nice to spend a long time in. Sounds simple but many corporate builds are just cold and too representational. They should be organic, of value and welcoming and where inhabitants can create their identities inside their own stories. Of particular note is the outback bar area of the Pond which is currently in the top ten of all second life brands itself on a ‘dwell’ basis, but more importantly it is part of a mix of features and functions that you need to create.
Secondly – A space where the inhabitants can create or contribute to the environment. So both The Pond and ABC have sandbox areas where residents (particularly new ones) learn to build and add things to the branded space. Also requests for changes from the visitors to the existing build should be taken seriously and acted on. Give them a sense of ownership of the space and they will thank you which will build trust.
Thirdly – Be authentic and talk to them at an equal level. Too many companies still talk down to their customers as their avatars do the ‘hard sales pitch’ thing. This is a real opportunity to show the human side to the brand, give it personality and again that insight will be endearing to the residents. A major consideration for many brands is to actually commit ‘real life’ people to be in the environment with the visitors 24/7. If you think you wont be able to collaboratively manage the community by factoring in the human resource follow-up, it might make sense not to start at all.

Advertising in these worlds are often seen as a big no, no from those inworld. Especially the old in your face, irrelevant, broadcast ad model. One thing we are experimenting with at the Project Factory is personalized and targetd advertising. This is not some Orwellian (or Minority Report) nightmare, more a way that the environment (at its crudest level ad hoardings) will change dependent on who is around them but there are many more subtle ad R&D experiments we are trailing. We, like many other developers, are learning as we go along and will never assume that this sort of functionality will prevail. An area that we definitely believe is here to stay is allowing residents to creatively interact with your brand or product. So let them co-design new product with you and listen to what they say about your existing products or services. Never before have brands had this opportunity to be so close to the consumer, you are in there with them, in real time, collaboratively.

Companies succeed in virtual worlds when they take much more of a lifestyle approach to their marketing. Whether you choose to go down this road and participate or not, Virtual Worlds will remain to be one of the most compelling ways we will interact socially and commercially in the future. The Project Factory’s virtual world services are also about merging the real with the virtual and creating experiences that are interactive, social and immersive. It is a very exciting time to be involved now at the dawning of this very real, virtual revolution. I hope that this brief talk wheted your appetite. If you want more come talk to us on our stand and check out the website listed here.

Thank you and time for a few questions?

and not mine but a great video about potential for brands (albeit slightly smoke and mirrors re: the interactions in this video) from Text100 and thousands of views on YouTube.

or thirteen non-exhaustive tips for organisations considering becoming stars in the new web 3.0 revolution…

I have mentioned before that I am currently working on a couple of major and one or two minor media companies first forays into the metaverse, or its most accessible incarnation Second Life. I can’t talk about them directly of course pre-launch so I thought why not create a ‘simple’ guide for brand owners using a couple of recent Second Life launches AOL (today) and the LWord (last week). What follows are thirteen basic principles for brand and property owners as they create a virtual presence in any multi user virtual environment which really came about from my own work in the past year considering what works and what doesn’t, combined with an observation of some of the ‘commonalities’ in many recent more mature brand launches. Some of this also cross relates to a post I did mid last year on how to achieve immersion and these are not focussed on ‘formats’ or new forms of entertainment that I cover elsewhere.

I have chosen AOL and LWord because the former is quite a broad media company without a clear single identity and the LWord because it is has a very narrow and defined identity but also as I was the line producer on an eTV version a couple of years ago. Another reason is that both are implemented by Electric Sheep and it is obvious they are developing their own little ‘format’ bible. The recent entries inworld from NBC, Reuters, Dell, Endemol (Big Brother) and MTV on the there.com platform all follow these basic principles which I illustrate below – some more than others. This will be a broad brushstrokes introduction as I don’t want to put the growing number of companies and one-avatar-and-their-virtual-dog operations out of business. I also don’t expect any self respecting brand to try to do this without contracting a company with significant experience either, the social, environmental, game/play, scripting, design aspects of this are very unchartered and it is critical to engage those who at least have some semblance of a map. Anyway on we go.

1 Don’t Become Virtual Just Because You Can

By way of an introduction a cautionary note. Sure there is a certain PR cache, trendy or super cool in being one of the first to participate a new kid on the emerging media block. Every second week there is a new ‘celebrity’ entrant and although I personally think in the medium/long term these worlds will be come commonplace for business, entertainment and education, we should view most of the current raft of services as experiments. The old ‘build it and they will come’ adage is risky at the moment when there is only around 40-50 000 concurrent users across all the fully rendered avatorial based ‘non-game’ virtual worlds. There are a lot of empty streets across the ‘branded’ grid and these early entrants are either in for the strategic long haul or just grabbing a smaller and smaller slice of the Second Life press pie. On the positive side though the learning that comes from each incremental new service is part of building a robust and longer term metaverse for all. There are many who say SL is purely about sex or money (just like the real world then, big revelation there) and that brands are not invited. I used to have the same view until I realised that without some form of organisational presence, educational purpose or celebrity event Second Life was really going nowhere – a glamourised chat room. New ‘brand’ entrants need to realise that they are to a great extent last minute guests at a party and as such need to bring something significant to it. It doesn’t have to be about sex or money but it should definitely be about new experiences and play.

2 Make Joining Simple, Accessible and Branded

One could think of Second Life particularly as the walled garden portal that hosts the content that comes from individuals and companies/organisations. A sign of maturity is creating a way for niche or interest audiences a way to participate without their feet actually touching the ‘aggregator’. So we are seeing as in the L Word example below ways to use exposed APIs to register and download the client without going to Second Life at all. This simplifies the relationship initially for these existing brand loyal audiences, sure it gets complicated later when they realise there is a sea of potentially more interesting ‘stuff’ in lorry loads, but the entry is far more elegant.

3 Once In World – Hold Their Hand, With Your Brand

A third part making the ‘birthing’ process easier for ‘newbs’ is to drop them into familiar surroundings. Their beloved stars (in the case of L Word) telling them how to get the best out of the world. The Linden orientation is simply a ‘tech manual’ approach, its fun, but is still about which buttons to press, the L Word version is ultimately clearer, because most of it is about making your avatar look presentable.

You can see other orientation islands and in the foreground here a simple circular path with very, very basic instructions. Given the audience are likely to be the metro-sexual crowd, we must expect lots of time to preen their avatars. It would have been good to incorporate this as part of the main environment, but I suppose this could be considered the dressing room and rehearsal space before ‘going on air’, where you are the star.

In my experience many RL people spend the majority of their first week tweaking their image, quite naturally, so the L Word (E Sheep) have provided as you can see in the last image in this category four orientation islands, just in case there is a sudden rush of a couple of hundred avatars. Really that is the fourth ‘entrance’ tip, make sure you can handle a rush for the door. People who are bounced rarely return so have enough ‘welcome’ zones, just in case.

4 Design Multiple Levels of Navigation

When people arrive in the main environment you should think of it as a metaphorical homepage. You must make several things clear. All that’s available for them to do (not consume), how to get to these places, a feel of the ‘world’ they are entering and lots and lots of ‘why’ they should stay and explore. The welcome/arrival area should ideally have eyeline to the main sites too. So central and raised is the usual deal. AOL’s environment feels a little like a Disney-type theme park (fun fair) and is laid out that way. Its general theme of entertainment is echoed in the overall consistent colour palette, the signage, the walkways and slight sense of discovery – if everything is telegraphed there is the alternative problem that avatars will think they don’t need to explore cause the labelling is too ‘samey’. This could be an issue with AOL’s signage below – which is a shame cause they do have a few surprises – see point 7.

5 Decide Early On Your USP

I am glad to announce that the last few ‘brands’ that have entered Second Life have moved away from building the office blocks and sticking their logo on the outside, with only a very slight nod to where they are. Thanks to developers who are growing in experience virtually all the new entrants have one or two new things, never before seen. Some are very superficial, some are just ‘ the best implementation of…”. AOL have decided to create a few ‘lets be the best at that…” items such as a fully branded skate-boarding area.

Complete with piped Real Life skateboard championships as you tumble around the heavily graffiti park. One wonders about sport in SL. This is a long way from Tony Hawks as the performance of SL servers and client are just not up to it (unless really optimised – meaning a whole sim to skateboarding only). So these are social spaces, skateboard for a few minutes, then find a corner and chat about it. This must be built in and planned for. See later.

Another fun item which falls in the ‘only one in SL’ bracket could be this other simple offering from AOL, the avatar ‘sticky wall. ‘Physical’ activity needs to be sprinkled across any offering, forcing quests and mind games all very important. This is about delivering an eclectic range of services vs something too narrow in focus.

One of the L Words USPs is the speed dating tables in the central part of their main island. This feels much like Big Brother that I blogged about earlier in that it is an already unnatural social interplay now with the added layer of being virtual and partly anonymous. I haven’t tried speed dating in SL but I suspect inside the ‘virtuality’ of L Word and (as you can see on the instructions here) if it is moderated well, it could be a great way to meet ‘new’ friends. SL is like any ‘club/bar’ situation not an ideal way of finding romantic or like-minded partners, Showtime are moving in the right direction with this.

Torrid Midnight of the SecondCast team and a leading fashion designer, is one of the first to try out the skateboard park which launched today.

6 Make sure the Environment has Synergy with the Brand

Now we can all imagine (I have been there hundreds of times) the discussions that take place when a group sits down to make any existing property ‘immersive’. The ‘we could do that!’, how about recreating one of those and so on. Many metaverse entrants insist on identical duplication, or model building of corporate buildings (NBC Rockefeller) or the actual TV sets as in the L Words version of the Planet Cafe below.

I am not going to dwell to much on over representational builds as I covered that in a post a year ago, but just to say that there are two ways to go here and the middle ground is the dangerous one. The brand should either be in your face and as precise a copy as possible of something that clearly represents the brand (or the context) or something such as Vodaphone’s build (a large megaphone, hearing aid) slightly surreal and tiping their hat to this ‘naturally’ strange world, where anything, seriously is possible. I still yawn a bit at the endless brick walled buildings, blue glass and ‘mall’ness to many of the current builds, but I am also aware first hand of the number of suits in companies who ‘need’ something recognisable and enough branded signs scattered around the place. As an example the easiest option would be for say a French brand to place a model of the Eiffel Tower on their sims, the more brave route is to create something ‘new’ and unique, a place you enjoy going back to. I personally have ‘done’ the real Eiffel tower on at least five trips, I have no real urge to do it again but I absolutely love the ‘essence’ of the French countryside such as Provence though. I wont go on as I will be exploring environmental identity in virtual worlds and what makes some more sticky than others, in a Terra Nova post in the next couple of months.

7 Be Sensitive to The World – Playful, Deliver Expectation and Have Depth

Now for the key ingredients for all new entrants into these spaces. It must deliver expected features in ‘island’ sims such as shops, cinemas/screens, dance areas and even branded things to buy. It is no different than being a tourist to a distant island and feeling that the environment is self-contained. Another major requirement is all visitors need to play/do and even in a ‘no rules’ game like Second Life, you can create smaller, casual games, particularly social ones.

Here AOL provide the staple branded clothing. I have never seen any figures in how many people actually buy this stuff, but I have also never seen avatars wearing non-fashion branded clothing (apart from Torrid above). Perhaps I need to get out more 😉

The quiz in the AOL sim is really good fun. It feels like interactive TV inside a virtual world. Simple multiple choice (the four colour selector – just like fast text keys in UK iTV), timer based questions and a top scorer board on the left. This would be great in a more ‘organic’ pub environment vs the rather board room look and feel here.

Virtually all new branded sims have the dance club/bar combination. For the L Word it works very well and when I was there, it had a constant churn of people. I think part of it is just checking out for reference what are the best clubs to landmark but part of this one is the obvious lesbian overtones. Yes all the avatars in there were female. The club itself was pretty dark and dismal and not on my return list.

The layout of the L Word sim I found a little disappointing. It had a similar feel to the there.com Laguna Beach (I blogged about in Sept), as the stores and buildings were just a little spread out and hidden. Even flying you felt things were disconnected and fragmented. It is important to make sure that although avatars will expect stores, and appropriate ones, that they should be integrated and not glued on as an afterthought.

Most of the shops for the L Word were indeed skins, clothes and various relationship ‘toys’.

8 Make the Experience as Personal as Possible

As I have indicated before in my web 3.0 posts, inside these worlds there is already a rampant web 2.0 paradigm. Avatars want to share and blog their experiences (I know I do whenever I get time). So in any build that has that first ‘wow’ factor about it, make sure there are enough places that allow the users to get the word out (that’s assuming you want traffic). The actual SL interface has much of this built in, but it is buried inside profiles and not where most viewing is – in the real web 2.0 world. So AOL have set up simple sets to take pictures of yourself and drop them onto the AOL blog site. In fact there are a few points where they encourage this, the sticky wall for example. To drive traffic to your virtual space you need to have lots and lots of content placed outside in the web 2.0 space.

One of my favourite bits of the AOL sim from a personalization perspective is the walk of stars for two reasons. One of them is the first picture on this post, a way to leave your mark, collect a copy of the star (because it will be erased by the next avatar of course) and take your picture just like a real ‘star’. The other thing that impressed me was the way a path can be made compelling. I spent as much time reading all the funny SL variants or real world stars names than I did in the whole rest of the sim. Partly because there were a few chucklers, partly because of the depth (a lot of effort from the Electric Sheep had gone into thinking them up as Johnny Ming told me) but mostly because they felt more integrated than everything else. They were embedded in the environment vs being stuck on or in like everything else.

9 If You Are Going to Provide Content Give Enough Choice

As a brand AOL is known as a kind of one-stop-entertainment-shop. So it was no surprise to see lots and lots of content in the various viewing halls and on screens in hidden corners. There was some disconnect here though as the sign outside in the first picture here says ‘millions of high quality videos’ and once inside the option is from a rolling list of about ten. So the outside the environment corporate message is lost inworld. The two have to be aligned. A message like the ‘worlds largest new network’ over a two floor brick office inworld, has a disconnect. Make the inworld messages appropriate and have a proportional scale and those that refer to the real world, clearly make that obvious.

10 Make Inworld Advertising as Integrated as Possible

Companies have seemed to be a little nervous about product placement and advertising from other companies in their spaces. This seems odd to me as in many situations such as the skateboard park below adverts actually work very well, especially ones for inworld services. I suspect that the ad departments in the respective companies look at the raw numbers and think that 3rd party adds will dilute their brand. I suspect there is a little truth in that, but a world without adverts embedded in places you expect them becomes quite paradoxically empty and missing something. This is not a flip-flop statement for me because I have always said ‘appropriate’ advertising vs ads rotating on fifty meter hoardings above residential areas, or above malls dropped alongside a peaceful beach retreat.

11 Be There In Person, Communicate and Learn

Any entrant into these worlds must, and I stress this, must have a constant personal presence. This is not the web. Put up your website and sit back and watch the page views, this is real people expecting to talk to the creators or the brand owners or especially the stars (or people role playing the stars). For AOL’s launch today we have Morton from Electric Sheep and Johnny Ming (of SecondCast again) and now Electric Sheep too. Both are happy to talk but their primary reason for being there is too see how things are used, if people are not getting to their ‘jewel’, how long they spend on the ‘activity’ that they thought would keep them occupied for hours and so on. Never before have we had this sort of ‘research detail’. This is the equivalent of getting inside the mind of the person using your homepage or site for the first time. You can follow them around, ask them why they went left rather than right. I won’t go on cause this will be another Terra Nova post when I am guest there in a month or so.

Adam Ramona and I chat with Johnny Ming about making Second Cast a little more arty, amongst other things.

12 Have as Much Content as Possible Inworld and Not on Weblinks

OK. Second Life is a pain when it comes to getting content into it. I spend most of my time importing textures (images to place around sites), sounds and animations. Getting web pages and RSS feeds is clunky to say the least. The easiest option is to just link out of SL to the default web browser of the user. There are no alternatives to this really but the temptation should be avoided to make every single item a link to a web browser, because simply the user will realise that the place is actually quite empty as they are spending most time on an external website. This is not rocket science. The user has made a concious decision to boot up a resource intensive 3D virtual world browser and not to browse the fast super efficient 2D web. They want social interchange and experiential activity not a bunch of branded web pages. Just as people say ‘oh I could never watch a full length feature film on my mobile’ there are several truths here. Avatars:
1 Will not click through and read more than a few pages of text on ‘your’ site.
2 They will generally will not watch long form movies, unless it is a pre-arranged social gathering. Short 1-4 mins only
3 Previews of audio and video are best, but make sure there is enough there to surprise them and ‘make’ them want to click to the web to discover more and possibly buy
4 Will only blog and send pictures to external sites (yours and theirs) if it is transparent and simple in your space. Take a picture, click this button, chat your blog text. Anything that involves putting notecards into objects, or crossing to a webpage forget it.
5 Enjoy anything that has a live’ness, a happening now in the real and virtual world. The nearer to a database driven website the virtual space is the more of a turnoff it will be. Sims should have lots of randomness scattered about. Sound that changes and shifts, images that tick over on ad hoardings, a sense of life, creatures and so on. This to me is all about content as well. Organising events on a regular basis is fine but they need to join your main group and this should be a priority at the beginning.

For brands that have no specific identity such as AOL, then something may have to be created for them. A virtual world incarnation of their 2D web ‘portal’ness, which I mentioned earlier. They went for the entertainment themepark, they could have easily gone for a vision of the future or a journey into the past, something abstract and unworldly, played with scale or just recreated a part of San Francisco.

13 Give the Environment Identity Make Social Activity Easy

My self agreed 90 minute blog time is up sadly so I will finish on this last point about social spaces in virtual worlds, which again will be part of a few posts on other more prominent blogs. The number of cafes, cinemas, meeting rooms, lecture theatres, living rooms and so on that are completely empty, yet just outside the door are groups of avatars happily chatting away, staggers me. Developers, including myself sometimes, put great effort into lots of interior detail, to then find later no one is using it. We imagine scenes of avatars role playing, or at least imagining they are really in those places, yet there is something quite claustraphobic about these ‘realistically’ enclosed spaces in many cases (as an aside I tend to build broad stuctures with very high ceilings (usually domes) if I want a sense of ‘indoor’ness). Unless there is an organised event at the auditoriums, cinemas and cafes they are usually empty. Design social spaces outdoors or at the very least give them an outdoor feel. Avatars in Second Life can fly and to block this 3rd dimension of travel makes many feel uncomfortable and disabled. It was interesting to be party too the types of conversations, when collecting some images for this post and checking out the new sites – the difference between AOL and L Word. The L Word group below were discussing intimate aspects of lesbianism and societies labelling of single gender relationships while in the L Word stores couples were shopping as if in real ‘L’ life – most kept referring back to the L Word and what was going on in the show or how it is being manifest here. On the AOL site the conversations I participated in were very broad, all topics, no focus and none of them referred back to AOL, apart from the media types who were prowling. Perhaps part of that was due to the fact that like Big Brother the L Word already has a ‘social’ expectation of its participants and back to point one above, if your brand is not already a conduit for a part of the global conversation, don’t expect it to become one in the metaverse.